Your debt-to-income ratio is the result of a calculation lenders use to determine if your monthly income and expenses allow you to qualify for a loan. It can be expressed as two different percentages—front-end and back-end—although typically only the back-end is used. This DTI calculator will provide you with both of these numbers.
Common DTI requirements are 43% or less for back-end and 31% or less for front-end, but this can vary considerably between lenders. For more information on DTI ratios as well as FHA mortgage requirements, please see the Personal Finance Terminology page.
Income
Other Income 1
Current Housing Expenses (Optional)
Fill in these fields only if you intend to retain the ownership or lease of your current property, whether it will be occupied by you or by a tenant. If you plan to rent it out, lenders may consider up to 75% of rent payments as income when determining if you qualify for the second property, which you can enter as additional income above. If you will be borrowing against your current home for the down payment on a second property, enter the future loan payment in the HELOC field below. First-time home buyers who will use the new property as their primary residence can skip to the Non-Mortgage Debt section.
Non-Mortgage Debt
Debt 1
New Property
Note that this calculator does not include buyer closing costs, which will vary based on location, lender, and the terms of the sales contract. It also assumes monthly premiums for private mortgage insurance rather than a single up-front premium.